Plans to make you pay more to keep coal-fired power plants running is a "bailout," and other key findings of new poll

FirstEnergy Corp. wants its customers to guarantee profitability of its largest coal-fired power plant in Ohio for the next 15 years. The company argues that after the first three-to five years, Sammis would actually make money for customers because wholesale prices would increase. Critics disagree. And a new poll finds consumers are sour on the deal as well. FirstEnergy shutdown Sammis a year ago, unable to compete with cheaper power on the grid generated by natural gas-fired plants. The plant re-opened after the company found a less expensive source of coal. Associated Press

COLUMBUS, Ohio -- Ohioans want more renewable energy and strongly oppose rate increases to help old, coal-fired power plants continue to operate, a new survey has found.

The Sierra Club and Public Citizen, a consumer group, commissioned the random telephone survey of 526 people served either by American Electric Power of Columbus or FirstEnergy Corp., based in Akron. Raliegh, N.C.-based Public Policy Polling contacted residents Aug. 7-9.

Here are the key results:

Ohioans overwhelmingly would deny requests from utilities here to have customers pay more for electricity generated by older, coal-fired power plants. Both FirstEnergy and AEP have asked just that in new rate cases pending before state regulators.

The FirstEnergy charges, $126 extra in the first three years for consumers using a modest 750 kilowatt-hours per month and more for businesses, would be added to the delivery costs, making them impossible to avoid. Both companies have moved ownership of their power plants to unregulated subsidiaries that are supposed to compete in wholesale markets without subsidies from ratepayers.

When asked specifically whether the AEP request is really just a "bailout," 40 percent said they were not sure and 47 percent agreed that it is a bailout. The poll did not specifically ask about the FirstEnergy rate plan.

More than half, 56 percent, think the state's power companies should be spending more to build renewable energy plants such as wind farms and solar arrays rather than coal- or gas-burning power plants.

More than two-thirds of Ohioans said energy efficiency is "very important" and that the state should spend more on such measures. Another 26 percent said efficiency upgrades are "somewhat important."

If renewable energy actually does lead to more jobs, more than half of those surveyed -- 58 percent, said they would be more likely to support such projects.

Only 40 percent said they were very concerned about air pollution in Ohio. And more than one in five said they were not concerned.

"These poll results demonstrate that consumers ... have concluded that this plan to try to force consumers to pay for uneconomic generation units is outrageous," said Tyson Slocum, director of Public Citizen's energy program. "It's great to see this kind of unified position ... that these proposals should not go forward."

Daniel Sawmiller, Ohio campaign chairman for the Sierra Club's Beyond Coal campaign, noted that the survey comes in the wake of the decision by Ohio Republican lawmakers and approved by Gov. John Kasich to freeze for two years the state's energy efficiency and renewable energy standards.

"What we are seeing now are bailout requests for old coal-burning plants as well as the Davis-Besse nuclear power plant ... To guarantee a market for these plants. But these plants are supposed to be divested," he said.

Slocum said the Ohio utility requests appear to be the only instances in the nation in which utilities whose power plants are no longer regulated are trying to tap rate payers for subsidies.

He said PJM Interconnection, the independent grid manager in Ohio and 12 other states, is considering somehow subsidizing old coal-burning plants in order to keep the grid stable. Such a subsidy would be paid for by an increase in transmission charges and impossible to avoid. The Federal Energy Regulatory Commission, not state regulators, would have the last word on such a charge.

If approved by the FERC -- and if the Public Utilities Commission of Ohio approved the FirstEnergy and AEP requests -- Ohio consumers would be paying two extra charges, he said.

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